Proceeds from selling stakes in teams will be shared among
counties and recreational games.
The ECB's leadership believes private investment will propel the Hundred
"to the next level" and establish it as the world's second-largest
franchise league after the IPL. The board has confirmed its financial
consultants and legal counsel for the sale, which it hopes to finalize by the
end of the year in preparation for a redesigned competition in 2025.
Earlier this month, the counties agreed to the ECB's suggested
"direction of travel". They all stand to earn financially from selling stakes in the eight Hundred teams - all controlled by the
ECB - to private investors, which is likely to include IPL owners and private
equity groups.
The proposed model has been extensively discussed, but there is now broad
agreement on the mechanism for splitting the proceeds. Initially, the ECB will
provide the host counties (MCC in the case of London Spirit) with 51% of the
shares in the eight teams for free. They will then pick whether to keep all,
some, or none of their individual stakes.
The ECB will then sell its 49% shareholding, with 10% going to the recreational
game in England and Wales and the remainder split amongst the counties. The
initial £275 million would be distributed 19 times (among the 18 first-class
counties and MCC). The remaining £150 million would be divided equally among
the 11 non-hosts, with any revenues exceeding £425 million distributed 19 times
more.
Vikram Banerjee, the ECB's head of business operations, has overseen the
process. He stated in an ECB news release, the board's first public
communication regarding the Hundred's privatization, that it would "unlock
the future potential" of the Hundred while financially sustaining the rest
of the sport.
"We have identified this moment as the opportunity to take the Hundred to
the next level while capitalizing on the global interest in the competition to
underpin the structure of the whole domestic game," Banerjee stated. "The
opportunity to engage new global strategic partners will help us unlock the
future potential of the Hundred."We will strive to bring in the best in
world sport to help grow the Hundred into a competition that will benefit all
of cricket for years to come. With earnings from any investment going directly
to the recreational and county game, it will help to support the various
aspects of cricket that are so essential to spectators and players alike, as
well as find and develop talent."
The ECB stated that the Hundred will play "a vital role
in the future of our sport" and that countries have shown support for its
ambitions. "The ambition is to seek partners with the expertise to help
take the competition to the next level while ensuring any investment benefits
the whole of the game," said the board.
"The ECB will continue working closely and collaboratively with its
members through the process, including finalizing how proceeds will be
distributed among the first-class counties, MCC, and the recreational
game."
The Raine Group, which worked on recent sales procedures for Premier League
football clubs Chelsea and Manchester United, will serve as the principal
advisor, tasked with identifying partners and negotiating investment
arrangements. Deloitte, one of the "big four" accounting companies,
will provide strategic advice, with Latham & Watkins and Onside Law serving
as legal co-counsel.
This year's Hundred will run from July 23 to August 18, and the ECB aims to
utilize it as a showcase for potential investors. The opening six days of the
season will overlap with Major League Cricket, potentially causing up to half
of the men's overseas players to arrive late.
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